South Korea's Ministry of Finance announced on Monday that it will provide up to 181 trillion won ($137 billion) in low-interest loans to exporters by the end of the year and waive visa fees for Chinese tourists to stimulate exports and tourism.
The government aims to increase the number of Chinese tourists from 1 million per month to 1.5 million by accelerating the removal of visa fees and coordinating tourism activities with retailers.
South Korea's Finance Minister, Chu Kyung-ho, stated that the trade balance in September would continue to show a surplus, the trend of declining exports would further slow down, and exports are expected to grow in the fourth quarter, thereby reversing the downward trend from the first half of the year.
ING analysts predict that South Korea's economy will grow by 0.2% in the third quarter on a seasonally adjusted basis, down from 0.6% in the second quarter. This forecast suggests that South Korea, seen as the global economy's "canary in the coal mine," is facing multiple pressures, including gloomy economic prospects for China, weak demand in the technology sector, and a continuous slowdown in domestic demand.
